There has been a big increase in housing construction in recent years. People started to buy houses with the advantages provided by the loans. In the face of this intense demand from people, home prices also increased. For this reason, recession began to take place in the housing market towards the end of 2017.
1. The Construction Cost Index Showed An Increase Of %22.1
Construction costs also increased due to the increase in the price of the dollar. According to data from the Statistics Institute of Turkey in the third quarter compared to the previous year, the construction cost index showed an increase of %22.1. This is the highest value recorded since 2008. According to the third quarter of 2016, the material index increased by %25.1 and the workmanship index by %12.9 this year.
2. Housing Costs Has Decreased
Despite the cost increase, the increase in housing costs has decreased. According to data from the Statistics Institute of Turkey increases in housing prices in July 2017 was 11.6%. This is the lowest value recorded from 2012 until that time.
3. Ali Ağaoğlu Warned About…
The rate of increase in housing prices has been slower than last year, making construction sector uneasy. The increase in housing prices in Istanbul, which can be shown as the heart of the housing market, is also below inflation. Speaking about the subject, Ağaoğlu Group Chairman Ali Ağaoğlu paid attention to the bankruptcy that happened last year. He warned about the construction industry. He said investors might face difficult situations if the buildings built with high prices could not be sold.